UPDATE: Eli Lilly Posts Lower Q3 Profit

Eli Lilly & Co

reported a drop in its third-quarter earnings. The Indianapolis, Indiana-based company posted quarterly earnings of $500.6 million, or $0.47 per share, down from $1.2 billion, or $1.11 per share, in the year-ago period. Its adjusted earnings came in at $0.66 per share. Its total revenue declined 16% to $4.88 billion versus $5.77 billion. However, analysts were expecting a profit of $0.67 per share on revenue of $4.83 billion. Total revenue in the US slipped 33% to $2.218 billion, while total revenue outside the US rose 8% to $2.658 billion. Alimta sales rose 5% to $723.4 million, while Humalog sales gained 15% to $706.1 million. Cialis sales rose 8% to $568.4 million, while Cymbalta sales slipped 73% to $368.0 million. Gross margin slipped 21% to $3.609 billion, while operating income dropped 64% to $562.0 million. "While Lilly's third-quarter financial results continue to reflect the impact of recent patent expirations, our clinical pipeline is now producing strong momentum to drive future growth," said John C. Lechleiter, Ph.D., Lilly's chairman, president and chief executive officer. Eli Lilly expects FY14 earnings of $2.34 to $2.42 per share on a reported basis. Eli Lilly shares closed at $64.68 on Wednesday.